SoftBank Group is providing Intel with a $2 billion capital injection, showing strong support for the US chip manufacturer during its restructuring phase.
The companies announced an investment in shares on Monday to provide support for the former well-known U.S. company, which has faced challenges in competing due to management mistakes that have left it with little presence in the expanding artificial intelligence chip sector.
SoftBank’s investment in Intel will make it one of the top ten shareholders and will further strengthen its focus on AI chips and assets, such as the Stargate data center project worth $500 billion.
SoftBank’s investment is beneficial, but it will not be the determining factor in altering Intel’s course, according to Amir Anvarzadeh, a stock strategist in Japan. The investment is primarily aimed at maintaining the strong relationship between SoftBank’s CEO, Masayoshi Son, and President Trump.
SoftBank’s investment in Intel is not connected to Trump, according to a source familiar with the matter, as reported by Reuters. There was no immediate response from the White House when asked for a comment.
“This strategic investment shows our confidence that the production and distribution of cutting-edge semiconductors will continue to grow in the United States, with Intel taking on a significant role,” Son stated.
The company will offer US$23 per share of Intel, slightly lower than Monday’s closing price of US$23.66.
US Treasury Secretary Scott Bessent stated that any potential US government investment in Intel would aim to assist the company in stabilizing, without compelling US companies to purchase Intel chips.
Bessent mentioned that the final step is securing a stake and seeking to boost the business through participation involving concessions. This could potentially increase investment in Intel to support the company’s chip production in the US, as outlined in the CHIPS Law.
Bessent did not specify the scale or duration of any American involvement in Intel.
Multiple obstacles
Intel experienced financial challenges and incurred a loss of $18.8 billion in 2024, marking its first negative outcome since 1986.
AMD, Intel’s traditional competitor, has been increasing its market share in the chip market for personal servers and computers, which are Intel’s main products, as its costly venture into third-party chip manufacturing did not succeed.
Intel’s unique position as a designer and manufacturer makes it a strong contender to compete with TSMC in the US, according to Charu Chanana, chief investment strategist at Saxo.
Intel’s funding is the most recent addition to Softbank’s significant investments in 2025, which also involve a $30 billion pledge to OpenAI, the creator of ChatGPT, and the funding leadership of Stargate.
